Global Development: Views from the Center

This is a joint post with Julia Clark and Christian Meyer.

Industrial policy—as many have already commented—is back. (See here, here and here).

The recent wave of post-financial-crisis interventionism has reignited the classic (and often heated) debate about whether governments can in fact nurture economic growth. Previous analysis of the East Asian miracle, and frustration at the perceived failure of certain liberalization policies, has led many to (again) embrace a more activist role for governments in economic development.

This is a joint post with Julie Walz

Since the mid-nineties, many African nations have ushered in dramatic economic and political changes. But growth in other countries is stalled due conflict, repressive regimes, and lack of infrastructure. A new publication captures the diversity across Africa, using an economic lens to evaluate the key issues affecting Africa’s ability to grow and develop. The Oxford Companion to the Economics of Africa is a compilation of 100 essays on key issues and topics across the continent. It includes contributions from young African researchers, longtime researchers on Africa and four Nobel Laureates. Authors were given the freedom to write their own perspectives, thus the result is not a literature review but an engaging snapshot of concerns and possibilities across the continent. With 48 country perspectives (from Algeria to Zimbabwe) and 53 thematic essays, the book rejects a one-size-fits-all approach yet recognizes that there are continent-wide opportunities and challenges. As the first work of its kind, it is an invaluable resource for anyone interested in the field, from graduate students to policymakers.

This post, co-authored with Alan Gelb, was originally published in Financial Times: This is Africa

On November 28 Anadarko Petroleum doubled the estimate of its massive Mozambique gas discovery. If this proves correct, Mozambique will become a major gas exporter and can expect a hefty windfall.

Mozambique is not alone. Per square mile, proven sub-soil assets in poor countries — notably in Africa — are only about one quarter of those in better-explored, rich countries. Not surprisingly, high prices and new technologies are driving new oil, gas, and mineral discoveries across the developing world. Billions of dollars will be pumped into countries like Uganda, Liberia, Papua New Guinea, Mongolia and Bolivia. While this should be good news, it also raises concerns.

Not too many people would think to take a vacation in Zimbabwe. My wife Caroline and I have our reasons.  Caroline was born and raised in the country, the descendant of an old Zimbabwe “pioneer” family. I am from South Africa.